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Abstract: Employee turnover or retention has dominated the research agenda and
attracted practitioners’ attention for decades. Previous research has,
however, suffered from lack of macro perspective in understanding
employee turnover in organizations. Based on the survey of employees
in a clay brick manufacturing company in Lesotho, the purpose of the
present study was to examine the impact of job satisfaction and cultural
traits on turnover intentions. There was a negative and significant
correlation between job satisfaction and turnover intentions, and all
cultural traits and turnover intentions. Though the variance contributed
by cultural traits (stability and flexibility) over demographic factors
and job satisfaction was only marginally significant, and the impact of
flexibility cultural trait became insignificant in the regression analysis,
the influence of stability cultural trait remained strong in both
correlation and regression analyses. Managerial and theoretical
implications are also discussed in this study.
Keywords: Organisational culture, job satisfaction, turnover intentions,
cultural traits
1. INTRODUCTION
Employee turnover or retention has dominated the research agenda and
attracted practitioner attention for decades. Mitchell, Holtom, and Lee
(2001, 96) identify voluntary turnover as a huge problem facing
organizations today. As a result, “thousands of studies have been conducted
on the topic” (ibid., 97).
*
Kelebone Leisanyane is an independent researcher based in Maseru, P.O. Box
1038, Maseru 100, Lesotho
**
Peter Khaola is a lecturer in the Department of Business Administration,
National University of Lesotho, P.O. Roma 180, Lesotho, Tel: (+266)
58043421, Fax: (+266) 22 340000, Email: pp.khaola@nul.ls
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Leisanyane and Khaola. The Influence of Organisational Culture and Job.... 61
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Reference
Point of Internal Involvement Consistency
Denison and colleagues (Denison and Mishra 1995; Fey and Denison
2003; Gillespie et al. 2008) define these traits as outlined below.
Involvement refers to employee commitment, sense of ownership,
involvement in decisions that affect them, and team orientation.
Consistency focuses on a set of management principles, consensus
regarding right and wrong ways to do things, and coordination and
integration across the organisation. Adaptability is the extent to which the
organisation has the capacity to deal with internal change in response to
external market demands. A shared mission explains why the organisation
exists, where it is headed, and provides sense of direction by identifying
goals and course of action for the organisation.
Denison and Mishra (1995, 216) categorise involvement and
adaptability as cultural traits related to organisation’s capacity to change,
while consistency and mission contribute to the organisation’s capacity to
remain stable and predictable over time. They argued that “the stability
traits of mission and consistency are useful predictors of profitability, while
the flexibility traits of involvement and adaptability are more potent
predictors of growth” (ibid., 221). Similar categorisation of cultural values
is found in Gordon and DiTomaso (1992, 789), who combined cultural
measurement scales into adaptability and stability.
It was therefore expected in this study that both the stability and
flexibility measures of culture would be negatively associated with turnover
intention.
H2: Stability measure of culture is negatively related to turnover intentions.
Specifically, it was also expected that individual stability cultural traits
would be inversely related to turnover intention.
H2A: Sense of mission is negatively related to turnover intention.
H2B: Consistency is negatively related to turnover intention.
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3 . METHODS
3.1. Research Setting
The research setting was a local clay brick manufacturing company in
Lesotho. The Company has been manufacturing and distributing clay brick
products for the past 30 years and currently employs around 110 employees
with varying skill levels ranging from a production assistant to a qualified
engineer. The Company is situated at Thetsane Industrial Area in Maseru
and manufactures various types of face, plaster and paving bricks for local
and South African markets. The Government of Lesotho through the
Lesotho National Development Corporation (LNDC) is the majority
shareholder with 73.6% shares, while the Privatisation Unit holds 22.8% of
the shares. The Privatisation Unit is an institution established by an Act of
Parliament in 1995 with a mandate to implement the privatisation program
of the Lesotho Government. The remaining share (3.6%) is held by Lesotho
Energy Enterprise (Pty) Ltd.
A number of significant events have impacted negatively on the
Company in the recent past. The most significant of these was the listing of
the company for privatisation in 1997 according to the Privatisation Act of
1995 without a successful bidder. This precipitated a situation of low
morale among employees as a result of job insecurity perpetuated by the
eminent sale of the company and high staff turnover at senior management
indicating instability and a turbulent work environment. Next was the loss
Leisanyane and Khaola. The Influence of Organisational Culture and Job.... 65
of the company’s on-site clay quarry in the year 2000 to make way for the
construction of a textile factory. The company was given insufficient time
to find suitable alternatives, and as a result significant quality problems
were experienced during the conversion to the new quarries, which also
increased the mining costs considerably due to the increased distance to the
new sites. The combination of all these adverse factors resulted in the
employees adopting a culture of disengagement, lack of sense of purpose
and high levels of voluntary work termination.
Turnover Intentions
This was a dependent variable, and it was measured with five items derived
from the literature. The sample items included: “It is likely that I will look
for another job within the next six months”; “As soon as I can find a better
job, I will quit this organization”; “I often think about quitting my job”; “I
often think about leaving my organization”, and “I will probably look for a
job outside this organisation within three years”. The Cronbach’s alpha
(internal reliability) of the scale was 0.92.
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Organizational Culture
Twelve (12) items selected from Denison’s (1990) Organizational Culture
Scale were used to measure cultural traits. The items were selected such
that they each represent the three subscales under each of the four traits
identified by the author (The items are reproduced in Appendix 1). The
Cronbach’s alpha for mission trait was 0.79, and that of consistency was
0.66. The Cronbach’s alpha for stability trait (an index of six items from
mission and consistency traits) was 0.80. Internal reliabilities for
involvement trait (0.48) and adaptability trait (0.46) were too low and
therefore these two traits were dropped. However, the Cronbach’s alpha of
flexibility trait (an index of six items from involvement and adaptability
traits) was moderate at 0.64, and was included in the model.
Job Satisfaction
One global indicator of job satisfaction, “I consider my job rather
unpleasant”, was used to tap into job satisfaction level. The item was
selected from the items developed by Brayfield and Rothe (1951, cited in
Judge et al. 2003, 312). The item was reverse coded so that higher scores
indicated higher levels of job satisfaction.
Demographic Factors
Three demographic factors were included in the model as control factors.
Gender was coded ‘1’ for males, and ‘2’ for females. Age was coded ‘1’ for
those below 20 years of age; ‘2’ for those who were 20 to 24 years of age;
‘3’ for those who were 25 years up to 35 years of age, and ‘4’ for those who
were above 35 years of age. Tenure at the organization was coded ‘1’ for
those who worked for less than one year; ‘2’ for those who worked for 1 to
3 years; ‘3’ for those who worked for 4 to 6 years; ‘4’ for those who worked
for 7 to 9 years; ‘5’ for those who worked for 10 to 12 years, and ‘6’ for
those who worked for more than 12 years.
4. RESULTS
The means, standard deviations, and correlations of the study variables are
shown in Table 1.
Leisanyane and Khaola. The Influence of Organisational Culture and Job.... 67
Table 1. Means (M), Standard Deviations (SD), and inter-correlations among study variables
Variable M SD 1 2 3 4 5 5.1 5.2 6 7
Note:
* Correlation is significant at 0.05 level (2-tailed), **Correlation is significant at 0.01 level (2-tailed)
Reliability coefficients, where relevant, are reported in parentheses.
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4. DISCUSSION
Previous research ignored the macro perspective in understanding employee
turnover in organizations. The other problem, according to Vandenberghe
(1999, 183), is that “organisational culture measures are rarely used outside
the national context where they are developed, and therefore their
generalisability to other nations is often questionable”. These latter
concerns are also expressed by Fey and Denison (2003) in their study of
organisational culture and effectiveness in Russia. The current study is an
initial attempt to extend the generalisability of the impact of culture on
turnover intentions of employees of a company in Lesotho.
Several key findings emerged from the study. As well, the study lends
support to the consistent finding that job satisfaction is the strongest
determinant of turnover intentions (Griffeth, Hom, and Gaertner 2000;
Leisanyane and Khaola. The Influence of Organisational Culture and Job.... 71
Egan, Yang, and Bartlet 2004; Tham 2007; MacIntosh and Doherty 2009).
The association between the two variables remained strong in both the
correlation and regression analyses.
As hypothesised, both stability and flexibility cultural traits correlated
negatively with turnover intentions. Even though a variety of scales were
used in the past, this study is in accord with the findings of Egan, Yang, and
Bartlet (2004), Carmeli (2005), Tham (2007), and MacIntosh and Doherty
(2009).
While the variance contributed by cultural traits over demographic and
job satisfaction was only marginal, and the flexibility cultural trait lost
influence in the regression analysis, the influence of stability trait remained
strong in both correlation and regression analyses. Even though this study
did not test the mediating role of job satisfaction, the fact that one cultural
trait lost influence in the regression analysis supports the contention of both
Egan, Yang, and Bartlet (2004) and MacIntosh and Doherty (2009) that the
elements of organisational culture may impact turnover intention
(behavioural intention) both directly and indirectly.
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REFERENCES
Ajzen, I. 1991. The theory of planned behaviour. Organisational Behaviour and
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Brayfield, A.H. and Rothe, H.F. 1951. An index of job satisfaction. Journal of
Applied Psychology, 73: 139–145.
Carmeli, A. 2005. The relationship between organisational culture and withdrawal
intentions and behaviour. International Journal of Manpower, 26(2): 177–
195.
Denison, D.R. 1984. Bringing corporate culture to the bottom line. Organisational
Dynamics, 13(2): 4–22.
Denison, D.R. 1990. Corporate culture and organisational effectiveness. New
York: Wiley.
Denison, D.R. and Mishra, A. K. 1995. Toward a theory of organizational culture
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Egan, T.M., Yang, B. and Bartlet, K. 2004. The effects of organisational learning
culture and job satisfaction on motivation to transfer learning and turnover
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Fey, C.F. and Denison, D.R. 2003. Organizational culture and effectiveness: Can
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706.
Gillespie, M.A., Denison, D.R., Haaland, S., Smerek, R. and Neale, W.S. 2008.
Linking organizational culture and customer satisfaction: Results from two
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